22 June 2017
Find out more

DNB spins off Vipps mobile payment service

13 February 2017  |  7340 views  |  0 Mobile phone turning to cash

More than 100 Norwegian banks are to take a stake in the Vipps P2P mobile payment app developed by DNB in a bid to block competition from rival Nordic platforms and the likes of Facebook, Google and Apple.

DNB, the SpareBank 1 alliance, the Eika alliance, Sparebanken Møre and the 15 independent savings banks which also are co-owners of Frende Forsikring have signed a letter of intent, to jointly acquire a 48% stake in the mobile payment service.

DNB will retain a 52% controlling interest in Vipps, which will be spun off as an autonomous joint venture. Under the agreement, the SpareBank 1 alliance will own 25%, the independent savings banks 12%, the Eika alliance 10% and Sparebanken Møre one per cent. SpareBank 1 will transfer its mobile payment service mCASH, which delivers many of the same services as Vipps over to the new company.

Rune Bjerke, group chief executive of DNB and incoming chairman of the board of Vipps, says: "Over the course of 2017, Vipps will be available in far more places than we have seen up until now. This alliance will make us better equipped to win the race against Nordic and international market participants."

Vipps counts about 2.15 million individual users in the country and more than 30,000 corporate customers. On average 204,000 transactions are carried out daily, DNB says.

Denmark's MobilePay - which ranks Norway's largest bank Nordea as a member - claims 3.1 million subscribers in Denmark, and approximately 300,000 users in Norway.

"Several market participants are competing to launch their own mobile payment solutions," says Finn Haugan, CEO of SpareBank 1. "A lot of people find this confusing, whether they are making payments or on the receiving end. Even though we have taken a firm market position in a short amount of time through our mCASH initiative, many of our customers have expressed a preference for one solution: a single strong and distinct provider."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Nordic banks view fintech collaboration as the way of the future

Nordic banks view fintech collaboration as the way of the future

10 February 2017  |  11737 views  |  0 comments | 16 tweets | 19 linkedin
Nordea ditches Swipp m-payments for Danske Bank's MobilePay

Nordea ditches Swipp m-payments for Danske Bank's MobilePay

13 October 2016  |  8601 views  |  1 comments | 8 tweets | 12 linkedin
Dutch central bank in digital currency plan

Dutch central bank in digital currency plan

29 March 2016  |  10201 views  |  3 comments | 20 tweets | 21 linkedin
DNB to cut 600 staff in massive branch closure programme

DNB to cut 600 staff in massive branch closure programme

18 March 2016  |  8499 views  |  1 comments | 13 tweets | 15 linkedin
Norwegian mobile payments service Valyou shuts down

Norwegian mobile payments service Valyou shuts down

17 November 2015  |  5975 views  |  2 comments | 14 tweets | 10 linkedin
DNB and Telenor to roll out national NFC payments platform

DNB and Telenor to roll out national NFC payments platform

19 November 2013  |  3882 views  |  0 comments | 7 tweets | 6 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.response.ncr.comvisit www.events.sap.comvisit www.www.fisglobal.com

Top topics

Most viewed Most shared
Santander's Openbank relaunched as 100% digital bankSantander's Openbank relaunched as 100% di...
15759 views comments | 48 tweets | 61 linkedin
Worldpay pilots app-only mPOS for small retailersWorldpay pilots app-only mPOS for small re...
8245 views comments | 17 tweets | 26 linkedin
Live: EBAday 2017, day twoLive: EBAday 2017, day two
7637 views comments | 4 tweets | 5 linkedin
UK banks will need to change one million sort codes under ring-fencing rulesUK banks will need to change one million s...
7246 views comments | 8 tweets | 25 linkedin
Live: EBAday 2017, day oneLive: EBAday 2017, day one
7057 views comments | 3 tweets | 4 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job